Uncle Sam as tenant? Two stocks with government exposure – Part II

While it is not directly investing in the government per se as you won’t have any direct ownership in it (luckily), I’ve found two stocks that are operating in the name of it. I am not talking about defense companies where governments are the sole customers (individuals don’t buy tanks). There are two high-yielding REITs with several government agencies as their tenants. Are they worth a look? Part two.

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Uncle Sam as tenant? Two stocks with government exposure – Part I

While it is not directly investing in the government per se as you won’t have any direct ownership in it (luckily), I’ve found two stocks that are operating in the name of it. I am not talking about defense companies where governments are the sole customers (individuals don’t buy tanks). There are two high-yielding REITs with several government agencies as their tenants. Are they worth a look? Part one.

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Buying companies after dividend cuts + new research report

What sounds crazy at first sight, indeed is rather an interesting strategy to think about. Sounds crazy, as almost everyone is talking about higher dividends? Let me make the case for dividend cuts! My next stock idea from my upcoming research report fits exactly into this scheme.

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BlackRock: ESG harmful for business – hated stocks poised to come back?

One of the big investment topics of this decade could be the return of those neglected and hated sectors that did not fit into boldly advertised ESG policies. Dirty, careless, only return focussed, etc. Yet, that’s not the same as not needed or replaceable, not to mention affordability. On the other hand, you have greenwashing, higher costs of living and ousting of non-liberal, more conservative customers with silly messages and acts. BlackRock is writing it and the market is speaking. Listen.

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A critical look at the „dividend investing“ strategy

While this article likely won’t make me many new friends (rather to the contrary), I find it necessary to discuss this topic as it’s often presented as an almost infallible recipe for success. The dividend investing strategy sounds great and if done properly has a psychological advantage. But my observation shows unfortunately a drift towards low-quality stocks and lots of sugarcoating which needs to be addressed.

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Quitting at a loss to free up capital and the mind

Today, I’m writing about one of my (former) best stock ideas which didn’t play out as initially thought. Besides describing the case and the reason that led me to throw in the towel, I also want to use it to show why it’s important to regularly go over one’s portfolio and to cut the weeds.

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Paypal – despite –80%, I think it can fall another 50%

PayPal’s stock was without a doubt one of the highfliers during the 2020–2021 tech mania. At its top, PayPal was valued at around 15x sales, having a market cap of more than 350 bn. USD, despite only 6 bn. USD in free cash flow. Not so surprisingly, the stock came back from this unsustainable level, though many likely didn’t expect to see less than 15x earnings after a drop of 80%. Time for a turnaround? I think this is still a strong value trap, good enough to fall another 50%.

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Can you resist?

With every passing day and week where one is not invested in the “Magnificent Seven” tech stocks, pressure continues to mount up – at least for those who allow for it. Investors who underperform the broader market indexes, are left in the dark. Usually, active fund managers have to report frequently and to apologize for not having been able to keep pace. It can be a mental strain and cost them their job. Private investors at some point also lose patience and sanity. A plea to stay calm and sane.

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Time to look at gas + new research report

Energy in general is a hotly debated and controversial topic. But when it comes to natural gas, it can become extreme, especially if you mix in liquefied natural gas – or in short: LNG. For long, I have been sitting on the sidelines regarding this market. But I feel now is the time to not only write a Weekly, but also a research report for my members about it – as a hedge from a European perspective. As a bonus, I estimate a 10% dividend yield to be announced next week from my latest pick.

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Why I don’t like diversification

Buying either parts of or even entire other companies is a common way for businesses to grow. This inorganic route though is often used for empire building (higher salaries and bonuses), sometimes even to hide own problems inside the core business (presenting an external growth story) and more often than not destroying shareholder value by overpaying for the targets. Today, I’m discussing a company that is losing through diversification.

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